As global markets continue to reach record highs, buoyed by robust trading activity and positive economic indicators, investors are increasingly seeking stable income sources amidst the dynamic geopolitical landscape. In this context, dividend stocks have emerged as an attractive option for those looking to capitalize on consistent returns; a well-chosen dividend stock can offer both income and potential growth in today's fluctuating market environment.
Top 10 Dividend Stocks
Name
Dividend Yield
Dividend Rating
Tsubakimoto Chain (TSE:6371)
4.17%
★★★★★★
Wuliangye YibinLtd (SZSE:000858)
3.18%
★★★★★★
CAC Holdings (TSE:4725)
4.57%
★★★★★★
Yamato Kogyo (TSE:5444)
3.88%
★★★★★★
Guangxi LiuYao Group (SHSE:603368)
3.20%
★★★★★★
China South Publishing & Media Group (SHSE:601098)
Overview: Dongfang Electric Corporation Limited designs, develops, manufactures, and sells power generation equipment both in China and internationally, with a market cap of HK$48.76 billion.
Operations: Dongfang Electric Corporation Limited's revenue segments include thermal power equipment at CN¥22.45 billion, hydro power equipment at CN¥5.67 billion, wind power equipment at CN¥9.23 billion, engineering and services at CN¥8.34 billion, and environmental protection equipment at CN¥3.12 billion.
Dividend Yield: 5.4%
Dongfang Electric's dividend sustainability is supported by a low payout ratio of 45.3% and a cash payout ratio of 33.9%, indicating dividends are well-covered by earnings and cash flows. However, the company's dividend history has been volatile over the past decade. Despite trading at a favorable price-to-earnings ratio of 8.4x compared to the Hong Kong market average, its dividend yield is relatively low at 5.4%. Recent leadership changes may impact future strategic directions but have not raised shareholder concerns thus far.
Overview: Metallurgical Corporation of China Ltd., along with its subsidiaries, operates in engineering contracting, resource development, specialty businesses, and integrated real estate in China, with a market capitalization of approximately HK$70.07 billion.
Operations: Metallurgical Corporation of China Ltd. generates revenue from engineering contracting, resource development, specialty businesses, and integrated real estate in China.
Dividend Yield: 4.6%
Metallurgical Corporation of China's dividend yield of 4.61% is not well-covered by free cash flows, despite a low payout ratio of 29%. The company's dividends have been stable and growing over the past decade, but they remain below the top tier in Hong Kong's market. Recent earnings show a decline in revenue and net income compared to last year, which may affect future dividend sustainability without improved cash flow generation.
Overview: Eastern Air Logistics Co., Ltd. offers air express, comprehensive ground, and multimodal transport services with a market cap of CN¥25.40 billion.
Operations: Eastern Air Logistics Co., Ltd. generates revenue from three main segments: Air Express (CN¥9.27 billion), Comprehensive Ground Services (CN¥2.48 billion), and Integrated Logistics Solutions (CN¥12.30 billion).
Dividend Yield: 4.9%
Eastern Air Logistics reported strong earnings growth with net income rising to CNY 2.07 billion for the first nine months of 2024. Despite a volatile dividend history, its current payout is well-covered by both earnings and cash flows, with a payout ratio of 21.4% and a cash payout ratio of 34.8%. The dividend yield stands at 4.86%, placing it in the top quartile within China, though its short track record may concern some investors seeking stability.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SEHK:1072 SEHK:1618 and SHSE:601156.
